2014 1041 Estate Return

[aleasemypya]

Preparing a 2014 Estate Return for decedent who died in tax year 2005. Decedent's personal Residence was sold in 2014. Are there any exclusions or credits that Estate is eligible for beside $600.00?

What was Estate Exclusion amount for 2005 Year of Death? Reviewed 2014 form didn't locate any info pertaining to exclusion. Spoke to an associate stated that Sale of Personal Residence exclusion does not
pertain to this sale because property belongs to Estate.

Thank you for any information concerning this matter.

[ATSMAN]

Preparing a 2014 Estate Return for decedent who died in tax year 2005. Decedent's personal Residence was sold in 2014. Are there any exclusions or credits that Estate is eligible for beside $600.00?

What was Estate Exclusion amount for 2005 Year of Death? Reviewed 2014 form didn't locate any info pertaining to exclusion. Spoke to an associate stated that Sale of Personal Residence exclusion does not
pertain to this sale because property belongs to Estate.

Thank you for any information concerning this matter.

Owner died in 2005, property sold in 2014. Who was living in that house before the sale?

[Burke]

What was Estate Exclusion amount for 2005 Year of Death? Reviewed 2014 form didn't locate any info pertaining to exclusion. pertain to this Thank you for any information concerning this matter.

Your question and info in your post/title indicates you are talking about an estate Income Tax return. There is no information on the form about the exclusion for Estate tax, as the correct form for filing that is Form 709. The federal Estate tax exclusion in 2005 was $1.5 million. You need to review your state's requirement. If the sale of the house completes the settlement of the estate, then you are filing a final 1041 and any gain/loss should flow through to the beneficiaries/heirs via K-1. You do not explain whether the house may have been rental property or used as a residence by an heir in the period from 2005 to 2014. If so, it is a little more complicated. It sounds as if you need to refer this to a tax professional who is familiar with these issues.

[aleasemypya]

aleasemypya-2014 Estate Return

Owner died in 2005, property sold in 2014. Who was living in that house before the sale?

Decedent's son was living in the property. He is now deceased.

[aleasemypya]

aleasemypya 2014 Estate Return

Thank you for your response. This is the final 1041. The decedent's son lived in the property until his death.

[Roberts]

Did they distribute income to the beneficiaries or was it taxed at the 1041 level?

[Kram BergGold]

Cap Gain

Gain is sales price less expenses of sale, less FMV on date of death (this is the general rule), less improvements since the 2005 death.

[Burke]

KG is correct. Whether a 1041 needs to be filed depends on how the real estate was devised. Was there a will? Was there a life estate designated for the son who lived and died there? If so, are there residual heirs named for the property to pass to? Is the deceased son one of the original heirs? If so, HIS estate may or may not be a beneficiary. No exclusion or credits for sale of the property, but was the estate maintaining the property in its name? There might be some deduction for real estate taxes or mortgage interest until the date of sale.